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The concept of the “hedged garden” is gaining traction in the AdTech space as a promising new approach. It offers a more controlled and protected environment for advertisers, reshaping how digital advertising operates. But what exactly is a hedged garden, and could it be the solution we’ve been looking for? Let’s dive into the details and explore its implications.
Walled gardens vs. the open web
Walled gardens continue to disrupt the advertising industry to stay relevant. Google, Meta (Facebook), and Amazon, the largest walled gardens, offer consumer privacy and rich first-party data to advertisers. But, time spent within these platforms, Google and Meta specifically, continues to decrease.
Open web: Pros and cons
On the other hand, the open web allows for more transparency, scale, and constant diversification. Yet, this has not led to increased spending. As a result, the open web continues to lag behind walled gardens. With a heavy reliance on third-party data and growing concerns over signal loss, the open web faces significant challenges. Under these circumstances, advertisers turn to easy activation channels like walled gardens, even as they become less effective to marketers.
Consumers are increasingly focused on privacy, pushing the industry toward alternatives to third-party cookies. As Google rethinks its cookie deprecation plans, channels like connected TV (CTV) and mobile apps, which don’t rely on cookies, are gaining traction.
“A significant portion of web traffic does not support cookies today — and that number will grow as Google rolls out [its] new solution. This means that the industry shouldn’t slow down investments in cookieless solutions, including alternative IDs, first-party data and data-driven contextual targeting.”
kimberly gilberti, general manager, experian
This shift emphasizes first-party data and user choice as a potential solution that balances privacy with effective advertising sources.
Enter the hedged garden
So, what is a hedged garden? The “hedged garden” is a new industry concept where a network of publishers works together to activate first-party data sets in a privacy-compliant way across many partners at scale. These publishers run their businesses with large amounts of first-party consumer data. But they are not big enough on their own.
What does a hedged garden look like? Hedges are more permeable and not as tall as walls. This idea is key to the success of the hedged garden.
Data protection and privacy regulations
As hedged gardens grow, staying compliant with privacy laws like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) is vital. These rules focus on protecting user data by requiring clear consent and transparency. Hedged gardens help publishers share first-party data in a safe, privacy-compliant way.
By working together, they ensure data is used responsibly, aligning with strict privacy regulations. This not only keeps marketers compliant but also builds trust with consumers at a time when data protection is more important than ever.
Opportunities for marketers in hedged gardens
Hedged gardens offer unique opportunities for marketers to enhance their strategies. Unlike walled gardens, hedged gardens offer the ability to work with a wider array of data sources and provide more diverse insights into audience behavior. This flexibility lets marketers develop more tailored, cross-platform campaigns that reach users in different ways.
Additionally, hedge gardens encourage collaboration with multiple partners, allowing for new partnerships and innovative strategies. With data from several sources, marketers can create more precise and privacy-compliant targeting methods to deliver better results. With the right approach, hedged gardens give marketers the freedom to break away from restrictive ecosystems and drive creative and impactful growth.
How Experian navigates through hedged gardens
As our ecosystem moves toward a hedged garden solution, how do we get involved? We are already a key ingredient for this type of solution within the TV landscape. Below, we walk through how we partner with one of our current TV media clients.
Organize our client’s data and provide a Living Unit ID (LUID)
First, we work with our client to clean and enhance their data, matching individual personal identifiable information (PII), such as an email address, to a household through a LUID. Our Digital Graph, which includes hashed emails (HEMs), cookies, mobile ad IDs (MAIDs), IPs, universal IDs, and CTV IDs, is rebuilt weekly to create accurate, refreshed connections. This consistent linkage creates precise targeting and measurement over time.
Our interconnected Offline and Digital Graphs organize identity into households and devices, enriched with marketing data for deeper insights and better addressability. With partnerships across major platforms, we improve match rates, helping you activate audiences seamlessly for optimal reach and measurement.
Enrich data through Experian Marketing Data
Next, our TV media client licenses our Marketing Attributes. This data is the most comprehensive resource for both traditional and digital marketing campaigns. With its multi-channel availability and addressable capabilities, our Marketing Attributes allow our clients to develop insights and build audiences based on a wide range of attributes within their segment set, ensuring they reach relevant audiences across all channels.
Activate audiences across the ecosystem
Finally, we help our client execute their audiences across the full digital and TV ecosystem. We enable the connection that allows these audiences to be activated by matching partner LUIDs (example: LUID123 = LUIDABC). By using client-specific LUIDs to match up data in a privacy-first manner, we can continue to build strong partnerships within the fast-growing ecosystem.
Are hedged gardens the future of advertising?
Have we found the perfect bridge between walled gardens and the open web? We’re hedging our bets. Our vote is yes, but only time will tell.
The future of advertising is shifting, and hedged gardens appear to be a promising model that balances the scale of walled gardens with the flexibility of the open web. We’re using what we learned from the TV industry to support other hedged garden verticals (retail media networks, audio, and gaming).
Now that we know what a hedged garden is, we should consider what the future holds for both walled and hedged gardens.
What’s next for walled gardens
- Increased privacy regulations: Walled gardens will face stricter regulations on data use, pushing them to adapt for compliance and trust.
- Reduced market dominance: As advertisers want more control, reliance on walled gardens could decline, shifting focus to hedged gardens.
- Diversified ad spend: Brands may spread their budgets across multiple platforms instead of being locked into walled gardens.
The future of hedged gardens
- Greater industry collaboration: Expect more publishers and platforms to join forces in hedged gardens for better data activation.
- Expansion into new channels: Hedged gardens will expand into emerging channels like gaming and connected devices.
- Improved data integration: Privacy-first data sharing in hedged gardens will lead to smoother, more secure ad targeting.
Data collaboration in a post-cookie world
As signal loss becomes a growing concern, the need for secure, privacy-first data collaboration will rise. Hedged gardens offer a pathway forward, allowing advertisers to activate first-party data across multiple partners while complying with data regulations.
This is where Experian Collaboration shines. By enabling data sharing without exposing raw consumer data, clients and partners can collaborate at Experian in their own environment or in clean rooms. Each of these environments allows partners to exchange data and gain insights without compromising privacy.
Maximize your advertising reach with Experian
As the advertising landscape changes, one thing remains clear: successful campaigns will require flexible, privacy-first solutions. At Experian, we are at the forefront of this shift. With our data expertise and advanced collaboration solutions, we’re here to help you navigate through both walled and hedged gardens to maximize your advertising reach.
Together, we can navigate across the walled and hedged garden ecosystems. Contact us to learn how.
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Facebook has become a cultural phenomenon over the years and an object of affection for marketers to connect with its users. Experian Simmons has put together 10 consumer behavioral stats based on their National Consumer Study and New Media Study about the social networking site leading up to its Friday IPO launch: 39% of Facebook users say “this website gives me something to talk about.” Top 3 reasons Facebook users visit social networking sites: 86% to keep in touch with friends 72% for fun 66% to reconnect with/find people they’ve lost touch with 78% of Facebook users have shown support for a group or business on a social networking site. 34% of Facebook users have played games on a social networking site. Among those: 73% play social games (like Farmville, SIMS social, etc) 68% play casual games (like Bejeweled, etc) 73% play games on a social networking site once or more a day 28% of Facebook users with cell phones and 42% of Facebook users with a tablet computer have downloaded a social networking app for the device Adult residents of the following Designated Market Areas (DMAs) with 1,000,000 or more adult residents are the most likely to have visited Facebook in the last 7 days: ) Seattle-Tacoma, WA Austin, TX Salt Lake City, UT Portland, OR Washington, DC 15% of Facebook visitors follow a musical group on a social networking site, 14% follow a TV show, 11% follow a newspaper or news outlet and 4% follow a magazine. The average Facebook user is 39.3 years old. The average Facebook user claims an annual household income of $69,900 with annual household spending on discretionary goods and services of $15,500. Hispanic users of Facebook are 55% more likely than non-Hispanic users to say they like to follow their favorite brands or companies on social networking sites. Don’t miss 15 stats about Facebook, previously posted on the Experian Marketing services blog. . For more information like the data provided above please download the Experian Marketing Services 2012 Digital Marketer report.
Today, it costs more than $40 to send a five pound package from the U.S. to Canada or Mexico. The cost to Europe or South America is even more expensive. For U.S. companies operating on a global scale, such as retail specialists or ecommerce organizations, address accuracy is crucial. Organizations can’t afford undeliverable mail and packages due to a wrong address – the total cost would be unmanageable. Mistakes happen frequently, whether it is an error by the company or the customer. If a mistake is made, companies can’t ask the customer to cover delivery fees, leaving the organization with the bill. Retailers must also consider potential delays due to long distances and custom checks. Altogether, address errors result in a poor customer experience and a decrease in efficiency. Implementing international address verification will save money, time and improve the customer experience. By combining primary address data from national postal authorities with partner-supplied data, businesses can verify international addresses from countries all around the world.
On April 22nd, Americans and many of their terrestrial counterparts in countries around the world will celebrate Earth Day, a tradition that was started in the United States by Wisconsin Senator Gaylord Nelson in 1970. Much has changed on the planet since the first Earth Day, and even in recent years attitudes continue to evolve when it comes to our outlook towards the environment. In 2007, Experian Simmons created the GreenAware consumer segmentation, which classified respondents to the Simmons National Consumer Study between 2005 until 2007 into one of four mutually exclusive segments based on their consumer behaviors and attitudes toward the environment. Since then, Experian Simmons has continuously classified all adult respondents into the GreenAware segments providing our clients with valuable insights into the evolution of the environmental movement. The four GreenAware segments are: Behavioral Greens: This group of people thinks and acts green. They have negative attitudes towards products that pollute and incorporate green practices into their lives on a regular basis. Think Greens: This group of consumers think green, but don’t always act green. Potential Greens: This group neither behaves, nor thinks along particularly environmentally conscious lines and remains on the fence about key green issues. True Browns: They are not environmentally conscious, and may in fact have negative attitudes about environmental issues. Since 2005, we have observed a nearly constant increase in the percent of U.S. adults who are classified as Behavioral Greens, the “greenest” segment of the four. Today, 33% of adults are Behavioral Greens, up from 27% who were classified as such in 2005. Meantime, Think Greens have maintained an almost perfectly constant 21% share of the population. The size of the True Browns segment has also remained constant at between 14% and 15% of the total adult population. The Potential Green segment, however, has steadily declined in market share from 39% in 2005 to 31% today. La Vida Verde Hispanic Americans have traditionally been ahead of the curve when it comes to green thoughts and deeds and they’re only getting greener with time. Today, 39% of Hispanic adults are Behavioral Greens, up from 33% in 2007. Just 32% of non-Hispanic adults are Behavioral Greens today, up from 29% who fell into the greenest segment in 2007. Interestingly, among the True Browns segment there are virtually no Hispanics to be found, and, in fact, while the True Brown population is actually growing among non-Hispanics, Hispanics are increasingly moving to greener segments. Specifically, just 1.3% of Hispanics are True Browns today, down from 8% who registered as such in 2007. By comparison, 17% of non-Hispanics are True Browns today, up from 14% in 2007. Green Today, Greener Tomorrow? The illustration below shows the alignment of America’s largest metropolitan areas with the four GreenAware segments today and in 2007. We see that residents of the San Francisco-, New York- and Miami-areas are the most likely to be in alignment with the Behavioral Green mindset today. Denizens of Washington, D.C., Los Angeles, Chicago, Philadelphia and Boston tend to fit more closely with the Think Green set that has green attitudes and intentions, but not always the actions to back it up. But things are changing. In fact, since 2007, we’ve seen that as local minds change, some cities become aligned with a different, often greener, segment. Let’s look at Chicago, for instance. In 2007, Chicagoans’ environmental outlook was more reflective of a mix of Potential Greens and True Browns. Since then, local attitudes have changed so much that Chicago-area residents are now more aligned with Think Greens and Behavioral Greens. Likewise, Cleveland, which was clearly a True Brown town in 2007, now falls in step with the Potential Green segment. In five years’ time, who knows? Cleveland could be America’s next green leader. Not brown now towns Looking at markets large and small with the biggest drop in concentration of True Browns, we see that attitudes in inland markets located in Gulf States have become disproportionately less brown since the Deepwater Horizon oil spill in 2010. In fact, seven of the ten Designated Market Areas (DMA) that saw the biggest decline in the percentage of their population classified as True Browns between 2007 and 2011 are inland markets in states bordering the Gulf of Mexico. While the oil didn’t directly reach these markets, the attitude change did spread: For example, 3.2% of adults residing in the Columbus-Tupelo-West Point, Mississippi DMA today are classified as True Browns, down from 19.3% who were categorized as such in 2007. In Macon, Georgia, while not a Gulf State, a more impressive shift took place. In 2007, the Macon, Georgia DMA had the fourth highest percentage of its population classified as True Browns (20.1%) out of 209 DMAs. Today, only 5.8% of area residents are True Browns, which makes it the market with the 10th lowest concentrations of True Browns in the nation. Macon still has one of the lowest shares of residents who are Behavioral Greens in the nation, but what a difference a few years makes. While the towns directly in the path of the oil spill are not among those with the biggest relative decline in True Browns, area residents’ attitudes did take on a greener hue since the spill. Today, 8.4% of residents in Panama City are True Browns down from 17.3% in 2007. Likewise, only 9.8% of adults in both the Mobile-Pensacola and Biloxi Gulfport DMAs are True Browns down from 17.3% and 19.0%, respectively, who fell into the least green segment prior to the spill. Learn more about Experian Simmons consumer segmentation offerings